{"id":65629,"date":"2025-04-22T10:17:55","date_gmt":"2025-04-22T03:17:55","guid":{"rendered":"https:\/\/maisonoffice.vn\/en\/?p=65629"},"modified":"2025-07-11T16:05:49","modified_gmt":"2025-07-11T09:05:49","slug":"manufacturing-company-in-vietnam","status":"publish","type":"post","link":"https:\/\/maisonoffice.vn\/en\/legal\/manufacturing-company-in-vietnam\/","title":{"rendered":"How to set up a manufacturing company in Vietnam"},"content":{"rendered":"

Vietnam\u2019s competitive labor costs and investor-friendly policies make it an ideal hub for manufacturing businesses. To establish a company, you must choose the right business structure, secure necessary licenses, and comply with local regulations. This guide outlines the key steps to help you set up your manufacturing company efficiently.<\/p>\n

Learn how to set up a company in Vietnam<\/b><\/a><\/em><\/p><\/blockquote>\n\n\n\n
\"Find<\/a><\/td>\n\"Find<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Understanding the manufacturing landscape in Vietnam<\/h2>\n

The Law on Foreign Investment in Vietnam<\/a> (\u00a0Law No. 61\/2020\/QH14<\/a>), effective from January 1, 2021, establishes Vietnam as an attractive destination for manufacturing. It provides foreign investors streamlined registration processes, tax incentives, and access to developed industrial zones. With strategic Southeast Asian location, low labor costs ($150-200\/month), and free trade agreements (EVFTA, CPTPP), Vietnam significantly attracts manufacturing-focused FDI, comprising over 64% of total FDI in 2023.<\/p>\n

Lear more:\u00a0How to Set Up a Manufacturing Company in Vietnam<\/a><\/em><\/strong><\/p><\/blockquote>\n

Key industries<\/h3>\n

Vietnam\u2019s manufacturing sector thrives across diverse industries, notably electronics, textiles, automotive, and sustainable manufacturing. The Law on Foreign Investment in Vietnam offers incentives like tax exemptions for priority sectors. Electronics, led by companies like Samsung, attracts significant FDI, while textiles and footwear benefit from low labor costs and free trade agreements like EVFTA. High-tech and green manufacturing also gain support from government policies, presenting attractive opportunities for companies setting up manufacturing operations in Vietnam.<\/p>\n

Lear more:\u00a0\u00a0Top 10 multinational companies in Vietnam<\/a><\/em><\/strong><\/p><\/blockquote>\n

\"Vietnam\u2019s
Vietnam\u2019s manufacturing sector thrives across diverse industries<\/em><\/figcaption><\/figure>\n\n\n\n\n\n\n\n
Industry<\/span><\/strong><\/td>\nDetails<\/span><\/strong><\/td>\n<\/tr>\n
Electronics<\/span><\/strong><\/td>\nLeading industry with major players like Samsung. Dominates FDI inflows, supported by tax exemptions (up to 4 years) under the Law on Foreign Investment in Vietnam. Ideal for a manufacturing company in Vietnam in high-tech sectors<\/span><\/td>\n<\/tr>\n
Textiles and footwear<\/span><\/strong><\/td>\nKey sector driven by companies like Nike and Adidas. Benefits from low labor costs ($150-200\/month) and FTAs (e.g., EVFTA), making it a prime choice to set up a manufacturing company in Vietnam<\/span><\/td>\n<\/tr>\n
Automotive<\/span><\/strong><\/td>\nEmerging industry with incentives for high-tech production under the Law on Foreign Investment in Vietnam. Attracts investors aiming to set up a manufacturing company in Vietnam in advanced manufacturing<\/span><\/td>\n<\/tr>\n
High-tech & Sustainable manufacturing<\/span><\/strong><\/td>\nGrowing focus with government support for green production. Offers opportunities for a modern manufacturing company in Vietnam, aligned with global sustainability trend<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Market trends and opportunities<\/h3>\n

As of 2025, Vietnam’s manufacturing landscape thrives due to supply chain shifts under the “China Plus One<\/a>” strategy, driving significant FDI growth. Automation and digitalization enhance efficiency, especially in electronics and automotive sectors. High-tech industries and sustainable manufacturing offer promising opportunities, supported by favorable policies under the Law on Foreign Investment in Vietnam.<\/p>\n

\"Automation
Automation and digitalization industries improve efficiency, promote strong development<\/em><\/figcaption><\/figure>\n\n\n\n\n\n\n\n
Aspect<\/span><\/strong><\/td>\nDetails<\/span><\/strong><\/td>\n<\/tr>\n
Supply chain shift<\/span><\/strong><\/td>\nThe “China Plus One” strategy drives FDI, with $6.9 billion in the first two months of 2025 (up 35.5% YoY), boosting opportunities to set up a manufacturing company in Vietnam<\/span><\/td>\n<\/tr>\n
Automation & Digitalization<\/span><\/strong><\/td>\nRising adoption of smart factories and automation in electronics and automotive sectors enhances efficiency for a manufacturing company in Vietnam<\/span><\/td>\n<\/tr>\n
High-tech opportunities<\/span><\/strong><\/td>\nIncentives under the Law on Foreign Investment in Vietnam support growth in high-tech industries, ideal for investors looking to set up a manufacturing company in Vietnam.<\/span><\/td>\n<\/tr>\n
Sustainable manufacturing<\/span><\/strong><\/td>\nGrowing global demand for eco-friendly products creates a niche for a manufacturing company in Vietnam focusing on green production<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Legal framework and business structures<\/h2>\n

The Law on Foreign Investment in Vietnam (Law No. 61\/2020\/QH14<\/a>), effective from January 1, 2021, provides a clear legal framework for foreign investors establishing manufacturing companies. Alongside the Law on Enterprises 2020, it details business structures, registration processes, and investor protections. With manufacturing representing over 64% of Vietnam’s FDI in 2023 and attractive incentives like tax exemptions, understanding these laws is crucial for success in this sector.<\/p>\n

\"Understanding
Understanding investment or business laws is important<\/em><\/figcaption><\/figure>\n

Types of business entities<\/h3>\n

When planning to set up a manufacturing company in Vietnam, investors typically consider these primary business structures:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Criteria<\/span><\/strong><\/td>\n100% Foreign-Owned Company<\/span><\/strong><\/td>\nJoint Venture<\/span><\/strong><\/td>\nBusiness Cooperation Contract (BCC)<\/span><\/strong><\/td>\n<\/tr>\n
Definition<\/span><\/strong><\/td>\nA fully foreign-owned entity with complete control, ideal for a manufacturing company in Vietnam<\/span><\/td>\nA partnership between foreign and local entities, suitable for a manufacturing company in Vietnam<\/span><\/td>\nA non-equity contract-based collaboration, flexible for a manufacturing company in Vietnam<\/span><\/td>\n<\/tr>\n
Ownership<\/span><\/strong><\/td>\n100% foreign-owned, no local partner required<\/span><\/td>\nShared ownership between foreign investor and local partner (ratio varies)<\/span><\/td>\nNo ownership structure; based on contractual agreement between parties<\/span><\/td>\n<\/tr>\n
Control<\/span><\/strong><\/td>\nFull control by the foreign investor<\/span><\/td>\nShared control, dependent on the joint venture agreement<\/span><\/td>\nControl varies by contract terms, no legal entity formed<\/span><\/td>\n<\/tr>\n
Legal requirements<\/span><\/strong><\/td>\nRequires IRC and ERC under the Law on Foreign Investment in Vietnam<\/span><\/td>\nRequires IRC, ERC, and a joint venture agreement under the Law on Foreign Investment in Vietnam<\/span><\/td>\nRequires a BCC agreement, no separate legal entity registration<\/span><\/td>\n<\/tr>\n
Setup complexity<\/span><\/strong><\/td>\nModerate, involves standard registration with MPI for a manufacturing company in Vietnam<\/span><\/td>\nHigh, requires negotiation with local partner and additional approvals<\/span><\/td>\nLow, simpler process with fewer legal formalities to set up a manufacturing company in Vietnam<\/span><\/td>\n<\/tr>\n
Industry suitability<\/span><\/strong><\/td>\nBest for electronics, automotive, high-tech manufacturing<\/span><\/td>\nIdeal for textiles, footwear, leveraging local expertise for a manufacturing company in Vietnam<\/span><\/td>\nSuited for short-term or pilot projects in manufacturing<\/span><\/td>\n<\/tr>\n
Advantages<\/span><\/strong><\/td>\nFull autonomy, no local dependency, streamlined for a manufacturing company in Vietnam<\/span><\/td>\nCombines international and local strengths, market access benefits<\/span><\/td>\nFlexible, low legal complexity, quick to set up a manufacturing company in Vietnam<\/span><\/td>\n<\/tr>\n
Disadvantages<\/span><\/strong><\/td>\nHigher initial responsibility, no local support<\/span><\/td>\nPotential conflicts with local partner, complex setup<\/span><\/td>\nLimited long-term stability, no independent legal status<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Lear more:\u00a0Types of Companies in Vietnam<\/a><\/em><\/strong><\/p><\/blockquote>\n

Legal requirements<\/h3>\n

To set up a manufacturing company in Vietnam under the Law on Foreign Investment in Vietnam, foreign investors must follow a structured process involving multiple legal steps. Below is an elaboration of these requirements, designed to help you establish a manufacturing company in Vietnam efficiently:<\/p>\n\n\n\n\n\n\n\n
Step<\/span><\/strong><\/td>\nSummary<\/span><\/strong><\/td>\nTimeline<\/span><\/strong><\/td>\nLegal basis<\/span><\/strong><\/td>\n<\/tr>\n
Investment Registration Certificate (IRC)<\/span><\/strong><\/td>\nRequired for projects over $800,000 to set up a manufacturing company in Vietnam. Filed with MPI<\/span><\/td>\n15-30 days<\/span><\/td>\nLaw<\/a> No. 61\/2020\/QH14, Article 37<\/a><\/span><\/td>\n<\/tr>\n
Enterprise Registration Certificate (ERC)<\/span><\/strong><\/td>\nRegisters your manufacturing company in Vietnam as a legal entity. Filed with DPI<\/span><\/td>\n3-5 days<\/span><\/td>\nLaw No. 59\/2020\/QH14, Article 27<\/a><\/span><\/td>\n<\/tr>\n
Additional Permits (e.g., EIA)<\/span><\/strong><\/td>\nEIA needed for factory operations; sub-licenses for conditional sectors like chemicals<\/span><\/td>\n30-60 days (EIA)<\/span><\/td>\nDecree No. 40\/2019\/ND-CP, Article 9<\/a><\/span><\/td>\n<\/tr>\n
Post-Registration Compliance<\/span><\/strong><\/td>\nTax code, capital account, and factory licenses to operate a manufacturing company in Vietnam<\/span><\/td>\n1-15 days<\/span><\/td>\nCircular No. 105\/2020\/TT-BTC<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Guide to setting up a manufacturing company in Vietnam<\/h2>\n

The Law on Foreign Investment in Vietnam (Law No. 61\/2020\/QH14<\/a>) guides investors to set up a manufacturing company in Vietnam. Law effective since January 1, 2021. Manufacturing drives over 64% of Vietnam\u2019s FDI in 2023. Offers tax exemptions for up to 4 years for a manufacturing company in Vietnam. A step-by-step guide simplifies establishing a manufacturing company in Vietnam.<\/p>\n

\"Need
Need to refer to the guidance procedures to establish a manufacturing company in Vietnam<\/em><\/figcaption><\/figure>\n

Step 1: Choose the appropriate business structure<\/h3>\n